Subsidizing Corporate Tax Dodgers
By Ben Wilcox, Alan Stonecipher and Dan Krassner
February 25, 2015
Integrity Florida is a nonprofit, nonpartisan research institute and government watchdog whose
mission is to promote integrity in government and expose public corruption.
www.integrityflorida.org | @IntegrityFL
Executive Summary
As Florida policymakers consider cutting corporate profits tax revenues, this study seeks to
provide more transparency about the actual corporate profit tax rates being paid by the Fortune
500 corporations headquartered in Florida to state governments in the U.S.
While the Florida Legislature maintains a policy of secrecy that prevents disclosure of corporate
profits tax payments made by individual corporations, the staff of Citizens for Tax Justice (CTJ)
and the Institute on Taxation and Economic Policy (ITEP) conducted a special study of state
corporate profits tax payments made by Florida’s 17 Fortune 500 corporations nationally at the
request of Integrity Florida. CTJ/ITEP used the same methodology it has used in its periodic
national reports of state corporate profits taxes in order to determine estimates of corporate
profits, corporate profit taxes paid and corporate profit tax rates.
Thanks to the data provided by CTJ/ITEP, Integrity Florida found that all of the profitable
Fortune 500 corporations headquartered in Florida paid state governments in the U.S. on average
a lower corporate profits tax rate than Florida’s 5.5 percent rate between 2011 and 2013. Most of
these corporations have received taxpayer-funded subsidy deals and government contracts. The
corporations examined in this report have also spent heavily on state-level political campaign
contributions and legislative lobbying in Florida.
Key Findings about the Fortune 500 corporations headquartered in Florida:







While the corporate profits tax rate in Florida is 5.5 percent, the 13 profitable Fortune
500 corporations headquartered in Florida paid a 2.7 percent average corporate profits tax
rate to state governments in the U.S. between 2011 and 2013.
The 13 profitable Fortune 500 corporations headquartered in Florida made $35.1 billion
in estimated corporate profits between 2011 and 2013.
The 13 profitable Fortune 500 corporations headquartered in Florida paid $945.7 million
in total estimated corporate profits taxes to all state governments in the U.S. between
2011 and 2013.
Florida taxpayers paid more than $2.4 billion to 10 of Florida’s 17 top Fortune 500
corporations for state government contracts between 2011 and 2013.
Florida taxpayers have provided 13 of the 17 Fortune 500 corporations headquartered in
the state more than $147 million in subsidies.
Floridians gave the largest profitable corporations in the state more public money through
government contracts and subsidies than those corporations paid back in state taxes on
their profits nationally between 2011 and 2013.
Policies that allowed these corporations to take advantage of low corporate profits tax
rates, along with large government contracts and subsidies, could be a result of the
corporations’ significant lobbying and campaign contributions, including the more than
$22 million they spent for those purposes in Florida just between 2012 and 2014.
Subsidizing Corporate Tax Dodgers, February 25, 2015
2
Key Policy Recommendations:
1. Florida policymakers should consider adoption of the model state corporate profits tax
disclosure act. At a minimum, any corporation seeking a government contract or
taxpayer-funded subsidy should be required to disclose publicly the organization’s
corporate profits tax rate and amount of state and local tax revenue paid during the years
the entity receives a government contract or subsidy.
2. The DEO Economic Development Incentives Portal should be expanded to publicly
disclose the details of every state and local subsidy deal.
3. Florida’s lobbyist disclosure laws should be enhanced to detail the exact compensation
provided by clients to their lobbyists as well as the specific legislative and executive
policies being influenced by their lobbying activities.
4. Site selection consultants and other professional services firms that seek subsidies for
corporations should be required to register as lobbyists.
5. The Florida Legislature should implement the budget transparency recommendations of
the User Experience Task Force to help the public follow their money.
Florida’s Fortune 500 Corporations
Seventeen corporations headquartered in Florida are among the Fortune 500 largest companies in
the United States.i
Exhibit 1: Florida’s Fortune 500 Companies*
2013 2014
Rank Rank
AutoNation
Fort Lauderdale 177
162
CSX Corp.
Jacksonville
231
231
Darden Restaurants
Orlando
328
319
Fidelity National Financial
Jacksonville
353
316
Fidelity National Information Services
Jacksonville
434
426
Harris Corp.
Melbourne
429
471
Hertz
Estero
293
264
Jabil Circuit
St. Petersburg
163
155
Jarden Corp.
Boca Raton
383
356
Lennar Corp.
Miami
573
431
NextEra Energy
Juno Beach
190
191
Office Depot
Boca Raton
253
248
Publix Super Markets
Lakeland
108
104
Ryder System
Miami
404
406
Tech Data Corp.
Clearwater
119
111
WellCare Health Plans
Tampa
345
294
World Fuel Services Corp.
Miami
74
71
*Staples announced on February 4 that it will buy Office Depot and establish corporate
headquarters in Massachusetts, not in Boca Raton.ii
Company
Location
Subsidizing Corporate Tax Dodgers, February 25, 2015
3
Florida’s Corporate Income Tax
Florida’s corporate income tax rate, among the lowest in the nation,iii is 5.5 percent of net profits
above the first $50,000, which is exempt.iv It is levied on only certain kinds of corporations
doing business in Florida – generally, only businesses organized as a C corporation under
Internal Revenue Service rules, and not limited liability companies, S corporations, sole
proprietorships or partnerships.
The corporate income tax is a major source of revenue used to fund basic state services. It is
estimated to yield about $2.2 billion in revenue in 2014-15, about eight percent of general
revenue collections and the second-largest general revenue source behind the state sales tax.v It
has been levied in Florida since 1971, when the legislature adopted it in response to a
constitutional amendment.vi
Proposed Changes to the Florida Corporate Income Tax
Governor Scott promised in his January 6, 2015, inaugural speech to “cut another $1 billion in
taxes in the next two years and continue to roll back the business tax [corporate income
tax]….”vii This follows his announced intent in his 2011 inaugural speech to eliminate the tax
completely.viii The legislature has not gone along with his desire to end it, but it did increase the
amount of profit exempted from the tax from $5,000 to $25,000 in 2011 and then to $50,000 in
2012.ix
How Much Do Florida’s Fortune 500 Companies Pay to the State Treasury?
Florida law provides that corporate income tax records are confidential.x Therefore, it is
impossible to determine how much, if any, a corporation pays the state in corporate income
taxes. The closest proxy is a corporation’s total state corporate income taxes paid throughout the
nation, as reported in the companies’ annual reports and on Form 10-K filed with the Securities
and Exchange Commission.xi
Source and Methodology
Staff of Citizens for Tax Justice and the Institute on Taxation and Economic Policy conducted a
special study of state corporate tax payments at the request of Integrity Florida. CTJ/ITEP used
the same methodology it has used in its periodic national reports of state corporate income taxes
– the most recent being “90 Reasons We Need State Corporate Tax Reform; State Corporate Tax
Avoidance in the Fortune 500, 2008 to 2012.”xii CTJ/ITEP used a company’s domestic pretax
profit as the companies disclosed them, with some adjustments where significant distortions
exist, in their financial statements. More explanation can be found in the “Methodology” section
on Page 46 of the “90 Reasons” report.
Subsidizing Corporate Tax Dodgers, February 25, 2015
4
All 13 Profitable Florida-Based Fortune 500 Corporations Paid Low State Corporate
Income Tax Rates in 2011-13xiii
Thirteen of the 17 Florida-headquartered 500 corporations reported profits in each of the last
three years for which information is available – 2011, 2012, and 2013. (Four – Hertz, Jabil
Circuit, Lennar Corp. and Office Depot – recorded a loss in one of more recent years. They are
excluded from this report because unprofitable companies do not and should not have to pay
state corporate income taxes.)
In no case did any of the profitable companies pay state corporate income taxes over the threeyear period near the Florida rate of 5.5 percent of net income. The 13 profitable Florida
corporations paid state corporate income taxes ranging from 1.2 percent (NextEra Energy) to 4.3
percent (AutoNation) cumulatively in the states where they did business and owed taxes in 201113. They earned profits of $35.1 billion combined in those three years and paid $945.7 million in
state corporate income taxes across the nation – an average state tax rate of 2.7 percent, or less
than half of Florida’s corporate income tax rate of 5.5 percent.
For 2013, the lowest state corporate income tax rate was Ryder System’s 1.1 percent, followed
by Harris Corp. at 1.7 percent and Darden Restaurants at 1.9 percent. Jarden Corp. paid 5.3
percent for 2013, close to Florida’s 5.5 percent rate.
Exhibit 2: State Tax Rate Paid by Florida Fortune 500 Companies (2011-2013 and ThreeYear Average)xiv
Company
AutoNation
CSX Corp.
Darden Restaurants
Fidelity National Financial
Fidelity National Information Services
Harris Corp.
Jarden Corp.
NextEra Energy
Publix Super Markets
Ryder System
Tech Data Corp.
WellCare Health Plans
World Fuel Services Corp.
TOTAL
2011
2012
2013
3.8%
4.5%
4.5%
3.4%
2.0%
2.9%
3.7%
3.5%
1.9%
1.9%
1.6%
2.6%
5.0%
5.1%
2.7%
3.3%
3.2%
1.7%
4.4%
0.1%
5.3%
0.4%
0.5%
2.7%
3.6%
3.8%
3.5%
3.4%
4.7%
1.1%
1.0%
1.6%
2.1%
-0.3%
2.9%
2.7%
3.1%
0.6%
3.9%
Subsidizing Corporate Tax Dodgers, February 25, 2015
3-Year
Average
4.3%
2.8%
3.4%
2.0%
4.2%
2.8%
2.9%
1.2%
3.6%
2.9%
1.6%
1.5%
2.4%
2.7%
5
Exhibit 3: State Profits and State Profits Tax Paid by Florida’s Fortune 500 Companies
(2011-2013 and Three-Year Total)
In millions of dollars
Company
AutoNation
CSX Corp.
Darden Restaurants
Fidelity National
Financial
Fidelity National
Information Services
Harris Corp.
Jarden Corp.
NextEra Energy
Publix Super Markets
Ryder System
Tech Data Corp.
WellCare Health Plans
World Fuel Services
TOTAL
Profits Profits Profits Total
2011
2012
2013
Profits
2011-2013
Profits
Tax
Paid
2011
1582.5
17.4
8774.0
97.9
1320.0
22.9
Profits
Tax
Paid
2012
23.3
59.6
18.0
Profits
Tax
Paid
2013
27.2
84.8
3.5
Total
Profits
Tax Paid
2011-2013
67.8
242.3
44.5
461.3
2888.0
621.4
516.8
2964.0
509.4
604.4
2922.0
189.2
404.8
838.4
634.0
1877.2
7.6
13.2
16.6
37.4
629.0
824.1
112.5
2452.0
2261.8
223.2
133.3
418.5
56.8
653.2
653.4
178.5
2603.0
2302.6
241.7
108.7
296.4
49.0
753.8
735.7
132.6
2521.0
2465.7
302.7
124.1
281.1
31.8
2036.0
2213.1
423.6
7576.0
7030.1
767.6
366.1
996.0
137.7
35,099.8
31.4
27.5
5.0
11.0
81.7
7.5
1.3
-1.2
1.7
33.4
20.8
0.3
14.0
88.6
11.3
1.7
8.6
0.3
20.2
12.6
7.1
69.0
85.2
3.3
2.6
7.5
1.3
85.0
60.9
12.4
94.0
255.5
22.1
5.7
14.9
3.3
945.7
State Corporate Income Tax Disclosure in the U.S.
Like Florida, laws in all states but one provide that corporate income tax returns are
confidential.xv This makes it impossible to find out how much any corporation pays to a given
state in state corporate income taxes, if any, or to evaluate how much the company is paying in
exchange for the benefits it receives from the state in services such as education, infrastructure,
public safety and the judicial system.xvi
Only Wisconsin provides some level of disclosure, although state corporate income tax
disclosure bills have been introduced in Oregon, Maine, California and Missouri in the last
decade.xvii The Illinois Senate passed a corporate income tax disclosure law in 2012, but the state
House of Representatives did not.xviii Even the Wisconsin law makes it difficult to obtain a
complete picture of corporate income tax payments to the state. The law requires that an
application be filled out for each company about which income is requested, and a fee of $4 is
charged for each company for each year requested. The application will result in one of three
pieces of information: the amount of net tax, “0” if the company paid no tax, or no record of a
return for that year.xix
Subsidizing Corporate Tax Dodgers, February 25, 2015
6
Reasons for Disclosure of State Corporate Income Tax Payments
The primary reason for disclosure is to allow the public and policymakers to know whether the
state tax structure provides that all corporations doing business in the state pay their fair share.
That information can be useful in stimulating any reforms that might be needed in the state’s tax
system to prevent unfair tax avoidance.xx
Model State Corporate Income Tax Disclosure Act
A model law that would mandate company-specific corporate tax disclosure by all public traded
corporations and their subsidiaries doing business in the state has been developed. The act would
require corporations to file a form with the state each year containing the company’s tax payment
and some other information such as state taxable income.xxi No state has adopted a similar
disclosure act, although the bill passed by the Illinois Senate was based on it.xxii
Florida’s Fortune 500 Corporations are Getting Taxpayer Assistance across the U.S.
Data from the Good Jobs First Subsidy Tracker and the Florida Department of Economic
Opportunity’s Economic Development Incentives Portal shows that 16 out of the 17 Fortune 500
corporations headquartered in Florida are receiving taxpayer assistance in the form of subsidies
from state and local governments from across the U.S.
Exhibit 4: State and Local Government Subsidies
Company
AutoNation
CSX Corp.
Darden Restaurants
Fidelity National Financial
Fidelity National Information Services
Harris Corp.
Hertz
Jabil Circuit
Jarden Corp.
Lennar Corp.
NextEra Energy
Office Depot
Publix Super Markets
Ryder System
Tech Data Corp.
WellCare Health Plans
World Fuel Services Corp.
Total
Florida Subsidies
$682,000xxiii
None
$5,403,000xxvi
$20,008,672xxviii
$1,200,000xxx
$4,500,000xxxii
$84,800,000xxxiv
$10,187,000xxxvi
$500,000xxxviii
None
None
$6,900,000xli
$4,497,500xliii
None
$4,023,929xlvi
$4,340,000xlviii
$150,000l
U.S. Subsidies
$682,000xxiv
$13,324,500xxv
$6,005,516xxvii
$21,151,199xxix
$3,900,995xxxi
$7,203,663xxxiii
$85,293,361xxxv
$14,372,554xxxvii
$9,431,730xxxix
None
$60,288,500xl
$15,114,296 xlii
$4,497,500xliv
$2,638,464xlv
$4,745,849xlvii
$4,340,000xlix
$153,180li
$147,192,101
$253,143,307
Subsidizing Corporate Tax Dodgers, February 25, 2015
7
Exhibit 5: State Vendor Payments to Florida Fortune 500 Companies
Company
AutoNation
CSX Corporation
Darden Restaurants
Fidelity Information
Services
Fidelity National
Financial
Harris Corporation
Hertz
Jabil Circuit
Jarden Corporation
Lennar Corporation
NextEra Energy/ FPL
Office Depot
Publix
Ryder System
Tech Data Corporation
WellCare Health Plans
World Fuel Services
Corporation
Totals
FY 11-12lii
$0
$216,210,980
$0
FY 12-13liii
$0
$10,700,732
$238,750
FY 13-14liv
$66,747
$5,290,720
$17,500
Total 2011-2014
$66,747
$232,202,432
$256,250
$0
$0
$0
$0
$190,000
$2,185,000
$607,031
$29,363,183
$55,481
$0
$0
$0
$31,027,335
$5,659,737
$284,819
$0
$0
$33,485,279
$39,166
$0
$0
$0
$27,942,411
$7,102,724
$466,876
$0
$0
$26,104,794
$52,935
$0
$0
$0
$28,077,335
$6,805,925
$313,540
$0
$0
$403,395,390lv
(2011 calendar
year)
$639,452,217lvi $969,585,277lvii $2,012,432,884lviii
(2012 calendar (2013 calendar (2011 – 2013
year)
year)
calendar years)
$0
$0
$0
$0
$686,186,925
$721,613,155
$1,036,921,804
$2,444,721,884
$2,982,031
$88,953,256
$147,582
$0
$0
$0
$87,047,081
$19,568,386
$1,065,235
$0
$0
Florida taxpayers paid more than $2.4 billion to 10 of Florida’s 17 top Fortune 500 corporations
for state government contracts between 2011 and 2013.
WellCare Health Plans is the largest state government vendor of the Florida-based Fortune 500
corporations with more than $2 billion in vendor payments between 2011 and 2013. In Addition,
WellCare was paid $1,680,425,301 in state government vendor payments for calendar year 2014.
It is notable that for WellCare Health Plans, there was little or no vendor payment data in the
state Transparency Florida website, even though it has been reported that WellCare and its
subsidiary StayWell are sizable vendors of the state. In October, 2014 it was reportedlix that
WellCare had received an amended 5 year, $11.8 billion dollar contract with the Agency for
Health Care Administration (AHCA) that expires at the end on 2018.
Integrity Florida made a public records request to AHCA for all payments to WellCare or
StayWell. We were told that the information is only available from a form 1099 tax report which
is based on the calendar year and not the fiscal year. The calendar year payments to WellCare for
2011, 2012 and 2013 are included in Exhibit 5.
Subsidizing Corporate Tax Dodgers, February 25, 2015
8
Exhibit 6: Political and Lobbying Influence of Florida’s Fortune 500 Corporations
The National Institute on Money in State Politics has tracked data nationally about the campaign
contributions and lobbying activities of Fortune 500 corporations headquartered in Florida for all
available years.
Company
AutoNation
CSX Corporation
Darden Restaurants
Fidelity Information Services
Fidelity National Financial
Harris Corporation
Hertz
Jabil Circuit
Jarden Corporation
Lennar Corporation
NextEra Energy/FPL
Office Depot
Publix
Ryder System
Tech Data Corporation
WellCare Health Plans
World Fuel Services Corporation
Totals
Political
Contributions
$2,046,581lx
$8,017,562lxi
$1,455,131lxii
$0
$1,211,574lxiii
$976,707lxiv
$475,875lxv
$0
$1,000lxvi
$909,705lxvii
$5,047,488lxviii
$489,213lxix
$6,944,434lxx
$91,860lxxi
$30,150lxxii
$1,587,727lxxiii
$1,090lxxiv
$29,286,097
Subsidizing Corporate Tax Dodgers, February 25, 2015
Number of Lobbyists
23
153
54
0
81
24
106
0
0
2
178
72
11
4
0
57
0
765
9
Exhibit 7: Campaign Contributions by Florida Fortune 500 Companies in Floridalxxv
Company
2012 Cycle
2014 Cycle
AutoNation
CSX Corporation
Darden Restaurants
Fidelity Information Services
Fidelity National Financial
Harris Corporation
Hertz
Jabil Circuit
Jarden Corporation
Lennar Corporation
NextEra Energy/FPL
Office Depot
Publix
Ryder System
Tech Data Corporation
WellCare Health Plans
World Fuel Services Corporation
Totals
$356,000
$231,023
$8,480
$35,000
$13,000
$30,000
$1,600
$0
$0
$3,000
$3,034,712lxxvi
$52,573
$1,237,026
$27,900
$0
$404,034
$0
$5,434,348
$294,015
$185,000
$9,000
$100,000
$320,081
$49,077
$27,750
$0
$0
$0
$7,959,849lxxvii
$63,525
$2,882,573
$4,200
$0
$227,275
$100
$12,122,445
Total 20122014 Cycles
$650,015
$416,023
$17,480
$135,000
$333,081
$79,077
$29,350
$0
$0
$3,000
$10,994,561
$116,098
$4,119,599
$32,100
$0
$631,309
$100
$17,556,793
Most of Florida’s 17 Fortune 500 companies made political campaign contributions in the 2012
and 2014 election cycles according to the campaign finance database maintained by the state
Division of Elections. Only three companies, Tech Data Corporation, Jabil Circuit and Jarden
Corporation made no contributions at all. World Fuel Services Corporation made a $100
contribution over the two election cycles to a political committee called “PETROPAC.”
Of the 17 companies, two made political contributions that totaled over a million dollars. The
company making the most contributions was NextEra Energy Corporation and its subsidiary
Florida Power and Light. NextEra and FP&L contributed just over $3 million in the 2012
election cycle. In 2014, with the Governor’s office at stake, NextEra and FP&L more than
doubled their 2012 contributions giving just under $8 million.
The other company that contributed over a million dollars in each election cycle was the
supermarket chain Publix. Publix also doubled their campaign contributions going from $1.2
million in the 2012 election cycle to almost $2.9 million in the 2014 cycle.
Other companies that contribute more than $100,000 in either of the two election cycles include
WellCare, AutoNation, CSX Corporation, Fidelity National Financial and Fidelity Information
Services. Six companies including Office Depot, Hertz, Darden Restaurants, Ryder System,
Subsidizing Corporate Tax Dodgers, February 25, 2015
10
Lennar Corporation and Harris Corporation each contributed less than $100,000 in each of the
two election cycles.
In total, in the 2012 election cycle, Florida’s 17 Fortune 500 companies gave $5,434,348 in
political campaign contributions. In the 2014 election cycle, the total political contributions from
the companies increased to $12,122,445. The combined total of giving for the 2012 and 2014
election cycles was $17,556,793.
Exhibit 8: State Legislative Lobbying by Florida’s Fortune 500 Companies
Aggregated Contract Legislative Lobbying Expenditures
Company
AutoNation
CSX Corporation
Darden Restaurants
Fidelity Information Services
Fidelity National Financial
Harris Corporation
Hertz
Jabil Circuit
Jarden Corporation
Lennar Corporation
NextEra Energy/FPL
Office Depot
Publix
Ryder System
Tech Data Corporation
WellCare Health Plans
World Fuel Services Corporation
Totals
Leg-2012lxxviii
$165,000lxxxi
$110,000lxxxiv
$60,000lxxxvii
$0
$100,000xc
$459,000xciii
$0
$0
$0
$0
$570,000xcviii
$70,000ci
$0
$0
$0
$200,000cvii
$0
$1,734,000
Leg-2013lxxix
$375,000lxxxii
$120,000lxxxv
$100,000lxxxviii
$0
$80,000xci
$392,000xciv
$20,000xcvi
$0
$0
$0
$545,000xcix
$90,000cii
$5,000civ
$0
$0
$280,000cviii
$0
$2,007,000
Leg-2014lxxx
$143,000lxxxiii
$95,000lxxxvi
$55,000lxxxix
$0
$90,000xcii
$70,000xcv
$15,000xcvii
$0
$0
$0
$300,000c
$80,000ciii
$45,000cv
$15,000cvi
$0
$100,000cix
$0
$1,008,000
2012-2014
$683,000
$ 325,000
$ 215,000
$0
$270,000
$ 921,000
$35,000
$0
$0
$0
$1,415,000
$240,000
$50,000
$15,000
$0
$580,000
$0
$4,749,000
While 6 of Florida’s 17 Fortune 500 companies did not have a lobbying presence in the Florida
Capitol for the last 3 legislative sessions, the 11 other companies did. Of those 11 companies,
NextEra Energy and its subsidiary Florida Power and Light have by far the biggest lobbying
presence, spending an average of over $471,000 a year according to the aggregated legislative
lobbying expenditures compiled from lobbyist compensation reports. They typically employ as
few as 26 lobbyists per year and as many as 29.
Other big spenders on legislative lobbying include Harris Corporation which spent $459,000 in
2012 and employs as many as 6 lobbyists per year; AutoNation which spent $375,000 in the
2013 legislative session and employs as many as 6 lobbyists a year; WellCare Health Plans
which spent $280,000 in 2013 and employs as many as 19 lobbyists in a year; CSX Corporation
which spent $120,000 in 2012 and typically employs 7 lobbyists a year; Fidelity National
Financial which spent $100,000 in 2012 and employs as many as 6 lobbyists a year; Darden
Restaurants which spent $100,000 in 2013 and employs as many as 7 lobbyists a year; and
Subsidizing Corporate Tax Dodgers, February 25, 2015
11
Office Depot which spent $90,000 on lobbying in 2013 and employs as many as 4 lobbyists a
year.
Three other Fortune 500 companies had a lesser presence in the state Capitol. Those companies
include Publix which spent $45,000 on lobbying in the 2014 session and employs as many as 4
lobbyists a year; Ryder System which spent $15,000 in 2014 and employs as many as 3 lobbyists
a year; and Hertz which spent $20,000 in 2013 and employs as many as 3 lobbyists a year.
The 6 companies that did not lobby the legislature include World Fuel Services, Tech Data
Corporation, Jabil Circuit, Jarden Corporation, Fidelity Information Services and Lennar
Corporation.
Florida’s Fortune 500 companies paid a total of $4,749,000 in aggregated legislative lobbying
expenditures over the three year period. The companies spent $1,734,000 in 2012, $2,007,000 in
2013 and $1,008,000 in 2014.
Over the three year period, the Fortune 500 companies employed a total of 232 lobbyists
although some lobbyists may have been hired by multiple firms. The companies employed 69
lobbyists in 2012, 73 lobbyists in 2013 and 90 lobbyists in 2014.
Exhibit 9: Number of Florida Legislative Lobbyists Employed by Yearcx
Company
AutoNation
CSX Corporation
Darden Restaurants
Fidelity Information Services
Fidelity National Financial
Harris Corporation
Hertz
Jabil Circuit
Jarden Corporation
Lennar Corporation
NextEra Energy/ FPL
Office Depot
Publix
Ryder System
Tech Data Corporation
WellCare Health Plans
World Fuel Services Corporation
Totals
2012
2
7
5
0
4
6
0
0
0
0
28
3
1
3
0
10
0
69
2013
6
7
7
0
2
5
3
0
0
0
29
3
4
0
0
7
0
73
Subsidizing Corporate Tax Dodgers, February 25, 2015
2014
6
7
6
0
6
6
3
0
0
0
26
4
4
3
0
19
0
90
12
Key Policy Recommendations:
1. Florida policymakers should consider adoption of the model state corporate profits tax
disclosure act. At a minimum, any corporation seeking a government contract or
taxpayer-funded subsidy should be required to disclose publicly the organization’s
corporate profits tax rate and amount of state and local tax revenue paid during the years
the entity receives a government contract or subsidy. Such disclosure would allow the
Florida Department of Economic Opportunity (DEO) and Enterprise Florida to report
annually to the Florida Legislature a return on investment report on every subsidy deal.
2. The DEO Economic Development Incentives Portal should be expanded to publicly
disclose the details of every state and local subsidy deal.
3. Florida’s lobbyist disclosure laws should be enhanced to detail the exact compensation
provided by clients to their lobbyists as well as the specific legislative and executive
policies being influenced by their lobbying activities.
4. Site selection consultants and other professional services firms that seek subsidies for
corporations should be required to register as lobbyists.
5. Despite recent transparency policy improvements, significant state government spending
and vendor contracts remain shielded in secrecy. The Florida Legislature should
implement the budget transparency recommendations of the User Experience Task Force
to help the public follow their money.
Subsidizing Corporate Tax Dodgers, February 25, 2015
13
Endnotes
i
Tampa Bay Times, June 2, 2014, Robert Trigaux, On latest Fortune 500, most of the few
Florida companies to make list rise in rank
http://www.tampabay.com/news/business/corporate/on-latest-fortune-500-most-of-the-fewflorida-companies-to-make-list-rise/2182572
ii
Palm Beach Post, Jeff Ostrowski, Staples will buy Boca-based Office Depot, HQ will be in
Massachusettshttp://www.palmbeachpost.com/news/business/reports-staples-will-buy-bocabased-office-depot/nj4SD/
iii
“State Corporate Income Tax Rates 2014,” Tax Policy Center.
http://www.taxpolicycenter.org/taxfacts/Content/PDF/state_corporate_income.pdf
iv
2014 Florida Tax Handbook, Florida Revenue Estimating Conference
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2014.pdf
v
“Fiscal Analysis in Brief, 2014 Legislative Session,” Florida Legislature.
http://edr.state.fl.us/Content/revenues/reports/fiscal-analysis-inbrief/FiscalAnalysisinBrief2014.pdf
vi
2014 Florida Tax Handbook, Florida Revenue Estimating Conference
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2014.pdf
vii
Tampa Bay Times, Florida Gov. Rick Scott’s Inaugural Address.
http://www.tampabay.com/news/politics/stateroundup/florida-gov-rick-scotts-inaugurationspeech/2212612
viii
Tampa Bay Times, Florida Governor Rick Scott Inaugural Address, January 4, 2011
http://www.flgov.com/2011/01/04/florida-governor-rick-scott-inaugural-address/
ix
2014 Florida Tax Handbook, Florida Revenue Estimating Conference
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2014.pdf
x
Online Sunshine. 213.053, F.S.,
http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&UR
L=0200-0299/0213/Sections/0213.053.html
xi
90 Reasons We Need State Corporate Tax Reform, Citizen for Tax Justice and Institute on
Taxation and Economic Policy, March 2014
http://ctj.org/90reasons/90ReasonsFull.pdf
xii
90 Reasons We Need State Corporate Tax Reform, Citizen for Tax Justice and Institute on
Taxation and Economic Policy, March 2014
http://ctj.org/90reasons/90ReasonsFull.pdf
xiii
All state corporate income data is derived from annual reports and 10-K forms filed with the
Securities and Exchange Commission. Research by Citizens for Tax Justice/Institute on Taxation
and Economic Policy
xiv
All state corporate income data is derived from annual reports and 10-K forms filed with the
Securities and Exchange Commission. Research by Citizens for Tax Justice/Institute on Taxation
and Economic Policy
xv
Email from Michael Mazerov, Senior Fellow, Center on Budget and Policy Priorities, January
28, 2015.
xvi
State Corporate Tax Disclosure, Why It’s Needed, Institute on Taxation and Economic Policy
http://www.itep.org/pdf/pb16corp.pdf
xvii
Mazerov email.
Subsidizing Corporate Tax Dodgers, February 25, 2015
14
xviii
Martindale.com, Illinois Senate Passes Expansive Corporate Income Tax Disclosure
Legislation; Illinois House of Representatives May Consider Next Week
http://www.martindale.com/corporate-law/article_Mayer-Brown-LLP_1636960.htm
xix
Making a Net Tax Request, State of Wisconsin Department of Revenue
http://www.revenue.wi.gov/mediaroom/NetTaxRequest.pdf
xx
Michael Mazerov, Center on Budget and Policy Priorities, State Corporate Tax Disclosure:
The Next Step in Corporate Tax Reform
http://www.cbpp.org/cms/?fa=view&id=1048
xxi
Michael Mazerov, Center on Budget and Policy Priorities, State Corporate Income Tax
Disclosure, Appendix A: The Model State Corporate Income Tax Disclosure Act
http://www.cbpp.org/files/2-13-07sfp.pdf
xxii
Mazerov email.
xxiii
http://subsidytracker.goodjobsfirst.org/prog.php?parent=autonation
http://fldeoportal.force.com/portal_comprehensive_report?report=comprehensive&projectid=a0
Md000000RPQ0JEAX
xxiv
http://subsidytracker.goodjobsfirst.org/prog.php?parent=autonation
http://fldeoportal.force.com/portal_comprehensive_report?report=comprehensive&projectid=a0
Md000000RPQ0JEAX
xxv
http://subsidytracker.goodjobsfirst.org/prog.php?parent=csx
xxvi
http://subsidytracker.goodjobsfirst.org/prog.php?parent=darden-restaurants
xxvii
http://subsidytracker.goodjobsfirst.org/prog.php?parent=darden-restaurants and additional
data provided by Good Jobs First
xxviii
http://subsidytracker.goodjobsfirst.org/prog.php?parent=fidelity-national-financial
xxix
http://subsidytracker.goodjobsfirst.org/prog.php?parent=fidelity-national-financial
xxx
http://subsidytracker.goodjobsfirst.org/prog.php?parent=fidelity-national-information-services
xxxi
http://subsidytracker.goodjobsfirst.org/prog.php?parent=fidelity-national-informationservices
xxxii
http://subsidytracker.goodjobsfirst.org/prog.php?parent=harris-corp
xxxiii
http://subsidytracker.goodjobsfirst.org/prog.php?parent=harris-corp
xxxiv
http://subsidytracker.goodjobsfirst.org/prog.php?parent=hertz-global
xxxv
http://subsidytracker.goodjobsfirst.org/prog.php?parent=hertz-global and additional data
provided by Good Jobs First
xxxvi
http://subsidytracker.goodjobsfirst.org/prog.php?parent=jabil-circuit
xxxvii
http://subsidytracker.goodjobsfirst.org/prog.php?parent=jabil-circuit
xxxviii
http://subsidytracker.goodjobsfirst.org/prog.php?parent=jarden
xxxix
http://subsidytracker.goodjobsfirst.org/prog.php?parent=jarden and additional data provided
by Good Jobs First
xl
http://subsidytracker.goodjobsfirst.org/prog.php?parent=nextera-energy
xli
http://subsidytracker.goodjobsfirst.org/prog.php?parent=office-depot
xlii
http://subsidytracker.goodjobsfirst.org/prog.php?parent=office-depot and additional data
provided by Good Jobs First
xliii
http://subsidytracker.goodjobsfirst.org/prog.php?parent=publix-super-markets
xliv
http://subsidytracker.goodjobsfirst.org/prog.php?parent=publix-super-markets
xlv
http://subsidytracker.goodjobsfirst.org/prog.php?parent=ryder-system
xlvi
http://subsidytracker.goodjobsfirst.org/prog.php?parent=tech-data
Subsidizing Corporate Tax Dodgers, February 25, 2015
15
xlvii
http://subsidytracker.goodjobsfirst.org/prog.php?parent=tech-data
http://subsidytracker.goodjobsfirst.org/prog.php?parent=wellcare-health-plans
http://fldeoportal.force.com/portal_comprehensive_report?report=comprehensive&projectid=a0
Md000000RKDV5EAP
xlix
http://subsidytracker.goodjobsfirst.org/prog.php?parent=wellcare-health-plans
http://fldeoportal.force.com/portal_comprehensive_report?report=comprehensive&projectid=a0
Md000000RKDV5EAP
l
http://subsidytracker.goodjobsfirst.org/prog.php?parent=world-fuel-services
li
http://subsidytracker.goodjobsfirst.org/prog.php?parent=world-fuel-services
lii
http://transparencyflorida.gov/Home.aspx?FY=14
liii
http://transparencyflorida.gov/Home.aspx?FY=14
liv
http://transparencyflorida.gov/Home.aspx?FY=14
lv
Public records provided to Integrity Florida by the Florida Agency for Health Care
Administration.
lvi
Public records provided to Integrity Florida by the Florida Agency for Health Care
Administration.
lvii
Public records provided to Integrity Florida by the Florida Agency for Health Care
Administration.
lviii
Public records provided to Integrity Florida by the Florida Agency for Health Care
Administration.
lix
http://www.modernhealthcare.com/article/20141010/NEWS/310109961
lx
AutoNation gave $2,046,581 to 253 different filers over 18 years and has hired 23 different
lobbyists over 7 years http://followthemoney.org/entity-details?eid=10176
lxi
CSX has given $8,017,562 to 2983 different filers over 22 years and has hired 153 different
lobbyists over 13 years http://followthemoney.org/entity-details?eid=735
lxii
Darden has given $1,455,131 to 248 different filers over 15 years and has hired 54 different
lobbyists over 8 years http://followthemoney.org/entity-details?eid=753
lxiii
Fidelity National Financial has given $1,211,574 to 179 different filers over 17 years and has
hired 81 different lobbyists over 12 years http://followthemoney.org/entity-details?eid=974
lxiv
Harris Corporation has given $976,707 to 195 different filers over 15 years and has hired 24
different lobbyists over 8 years http://www.followthemoney.org/entity-details?eid=12723
lxv
Hertz has given $475,875 to 154 different filers over 13 years and has hired 106 different
lobbyists over 13 years http://www.followthemoney.org/entity-details?eid=3818
lxvi
Jarden Corporation gave $1,000 to 1 different filers over 1 years
http://www.followthemoney.org/entity-details?eid=8340821
lxvii
Lennar Corporation has given $909,705 to 23 different filers over 11 years and has hired 2
different lobbyists over 1 years http://www.followthemoney.org/entity-details?eid=1525
lxviii
NextEra Energy has given $5,047,488 to 1007 different filers over 15 years and has hired 178
different lobbyists over 10 years http://www.followthemoney.org/entity-details?eid=1039
lxix
Office Depot has given $489,213 to 140 different filers over 19 years and has hired 72
different lobbyists over 6 years http://www.followthemoney.org/entity-details?eid=1931
lxx
Publix has given $6,944,434 to 1133 different filers over 20 years and has hired 11 different
lobbyists over 8 years http://www.followthemoney.org/entity-details?eid=2131
lxxi
Ryder System has given $91,860 to 80 different filers over 14 years and has hired 4 different
lobbyists over 2 years http://www.followthemoney.org/entity-details?eid=82398
xlviii
Subsidizing Corporate Tax Dodgers, February 25, 2015
16
lxxii
Tech Data Corporation has given $30,150 to 2 different filers over 2 years
http://www.followthemoney.org/entity-details?eid=2106302
lxxiii
WellCare Health Plans has given $1,587,727 to 339 different filers over 16 years and has
hired 57 different lobbyists over 9 years http://followthemoney.org/entity-details?eid=9458
lxxiv
World Fuel Services Corporation has given $1,090 to 1 different filers over 1 years
http://www.followthemoney.org/entity-details?eid=19930866
lxxv
http://election.dos.state.fl.us/campaign-finance/contrib.asp
lxxvi
Florida Power and Light 2012 - $2,653,212, NextEra 2012 - $381,500
lxxvii
Florida Power and Light 2014 - $7,553,615, NextEra 2014 - $406,234
lxxviii
https://www.floridalobbyist.gov/reports/2012_a_l.pdf
lxxix
https://www.floridalobbyist.gov/reports/2013_a_l.pdf
lxxx
https://www.floridalobbyist.gov/reports/2014_a_l.pdf
lxxxi
AutoNation 2012 - $125,000 Ronald Book PA, $45,000 Sayfie Law Firm
lxxxii
AutoNation 2013 - $25,000 Adams & Reese LLP, $300,000 Ronald L. Book PA, $50,000
Sayfie Law Firm
lxxxiii
AutoNation 2014 – $25,000 Adams & Reese LLP, $98,000 Ronald L. Book PA, $20,000
Sayfie Law Firm
lxxxiv
CSX 2012 – $60,000 Ausley & McMullen PA, $50,000 The Fiorentino Group
lxxxv
CSX 2013 - $60,000 Ausley & McMullen PA, $60,000 The Fiorentino Group
lxxxvi
CSX 2014 – $60,000 Ausley & McMullen PA, $35,000 The Fiorentino Group
lxxxvii
Darden Restaurants 2012 - $60,000 GrayRobinson PA
lxxxviii
Darden Restaurants 2013 - $100,000 GrayRobinson PA
lxxxix
Darden Restaurants 2014 - $55,000 GrayRobinson
xc
Fidelity National Financial 2012 - $100,000 Foley&Lardner LLP
xci
Fidelity National Financial 2013 - $80,000 Foley and Lardner LLP
xcii
Fidelity National Financial 2014 - $35,000 Foley and Lardner LLP, $55,000 Southern
Strategy Group
xciii
Harris Corporation 2012 - $459,000 Tsamoutales Strategies
xciv
Harris Corporation 2013 - $392,000 Tsamoutales Strategies
xcv
Harris Corporation 2014 - $65,000 Ballard Partners, 5,0000 Tsamoutales Strategies
xcvi
Hertz Corporation 2013 - $20,000 PooleMckinley
xcvii
Hertz Corporation 2014 - $15,000 PooleMckinley
xcviii
Florida Power and Light 2012 - $140,000 Ballard Partners, $30,000 bq and associates
international inc.,$20,000 Dutko Worldwide LLC, $25,000 Ericks Consultants Inc, $60,000
Floridian Partners LLC, $20,000 Gomez Barker Associates Inc, $20,000 Jefferson Monroe
Consulting LLC, $60,000 Johnson & Blanton, $25,000 Louis B. Parrish Consulting, $20,000
Paul P. Sanford and Associates, $10,000 Radey Thomas Yon & Clark PA, $50,000 Ronald L.
Book PA, $90,000 The Rubin Group
xcix
Florida Power and Light 2013 - $140,000 Ballard Partners, $15,000 bq and associates
international inc., $25,000 Ericks Consultants Inc, $0 Floridian Partners LLC, $20,000 Gomez
Barker Associates Inc, $20,000 Jefferson Monroe Consulting LLC, $60,000 Johnson & Blanton,
$25,000 Louis B. Parrish Consulting, $20,000 Paul P. Sanford and Associates, $20,000 Radey
Law Firm, $100,000 Ronald L. Book PA, $20,000 The Mayernick Group LLC, $60,000 The
Rubin Group
Subsidizing Corporate Tax Dodgers, February 25, 2015
17
c
Florida Power and Light 2014 - $45,000 Ballard Partners, $15,000 bq and associates
international inc., $25,000 Ericks Consultants Inc, $15,000 Gomez Barker Associates Inc,
$20,000 Jefferson Monroe Consulting LLC, $35,000 Johnson & Blanton, $25,000 Louis B.
Parrish Consulting, $15,000 Paul P. Sanford and Associates, $15,000 PooleMckinley, $30,000
Ronald L. Book PA, $15,000 The Mayernick Group LLC, $45,000 The Rubin Group
ci
Office Depot 2012 - $70,000 Capital City Consulting
cii
Office Depot 2013 - $90,000 Capital City Consulting
ciii
Office Depot 2014 - $80,000 Capital City Consulting
civ
Publix 2013 - $5,000 Floridian Partners LLC
cv
Publix 2014 - $45,000 Floridian Partners LLC
cvi
Ryder Systems Inc. - $15,000 Gunster Yoakley, & Stewart PA
cvii
2012 WellCare Health Plans - $140,000 Corcoran & Johnson, WellCare HealthCare Plan
$60,000 The Rubin Group
cviii
2013 WellCare Health Plans - $220,000 Corcoran & Johnson, WellCare HealthCare Plan
$60,000 The Rubin Group
cix
2014 WellCare Health Plans Inc. - $95,000 Corcoran & Johnson, $5,000 The Advocacy
Group at Cardenas Partners LLC
cx
https://www.floridalobbyist.gov/LobbyistInformation/LobbyistSearch
Subsidizing Corporate Tax Dodgers, February 25, 2015
18
Acknowledgements
Integrity Florida would like to thank Citizens for Tax Justice and the Institute on Taxation and
Economic Policy along with Good Jobs First for their research contributions to this report and
for the access provided to their data. The research team made every reasonable attempt to
independently verify the accuracy of the data provided by these organizations and other sources
referenced in the endnotes. Please contact the staff of Integrity Florida if you have any questions
or concerns about the accuracy of this third party data.
Integrity Florida research reports reflect the views of their authors alone and policy
recommendations should not be considered to be endorsed by the Integrity Florida Board of
Directors. All Integrity Florida board members represent themselves, not their business or
organization.
Integrity Florida would like to thank all of our donors for making research reports like this
possible. Our complete list of contributors is available at http://www.integrityflorida.org.
Subsidizing Corporate Tax Dodgers, February 25, 2015
19
About Integrity Florida
Integrity Florida is a nonpartisan, nonprofit research institute and government watchdog whose
mission is to promote integrity in government and expose public corruption. Our vision is
government in Florida that is the most open, ethical, responsive and accountable in the world.
Integrity Florida and its research have been cited by major news outlets including CNN, the
BBC, the Wall Street Journal, New York Times, Washington Post, Reuters and the Associated
Press. Integrity Florida policy solutions have been incorporated into 10 new laws increasing
government transparency and accountability in Florida. Founded in January 2012 by Dan
Krassner, Nicole Krassner and Michael Dema, Integrity Florida is based in Tallahassee, Florida.
Research Director Ben Wilcox joined the organization in February 2012.
What Others are Saying about Integrity Florida:
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Integrity Florida Institute
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Subsidizing Corporate Tax Dodgers, February 25, 2015
20